Introducing Basic Credit Management continues
You Should Understand What Credit Is.
Credit is what you get when a company or an individual gives or lends you something with the promise of you repaying it at a future date.
You Should Understand Why We Use Credit.
There are many reasons why you use credit. Everyone uses credit. We are extended credit daily. If you are using electric service you are being extended credit because you are billed for it at a later date.
Another reason why you use credit is to establish a good reputation among lenders and vendors in case you need to purchase a house or a car. If you have been managing your credit wisely and has been making your payment on time; you are establishing credit worthiness.
And the most popular reason is you can buy anything you want on credit and you don’t have to pay for it up front with cash.
After you learn all of the above things it's time to learn how to establish a good credit management plan.
